Financial Firms Lobby To Cut Cost Of TARP Exit

Wall Street Journal:

WASHINGTON -- The banking industry is aggressively lobbying the Treasury Department to make it less costly for financial institutions to get out of the Troubled Asset Relief Program.

The move could prove controversial for the banking industry, which is busy deflecting criticism about higher fees it is charging consumers for credit cards and other products and services.

Read the whole story: Wall Street Journal

Comments

[loki]

I wonder if all this , applying new rules to the tarp, and making it hard to get out of, isnt for some other reason. No , Im not talking about the Rethug fear mongering that Obama is trying to take control of the world. Im talking about deterring the pan handling that corporations are doing. Newspapers, car companies, banks and who knows who else is lining up for tax payer handouts. When there was no real rules or regulations for the money, they were eager to take it and not look back. But now they are thinking twice and even considering paying it back now. Maybe all these conditions are a way of saying NO, without having the corporations whine and cry at how unfair the gov it and that they deserve to be giving billions now.

[watchTVgetSTUPID]

They need to pay back 100% of the government loans backed with their toxic debt first.

[captaincrawley]

"The American Bankers Association sent the Treasury a letter last week asking for the ability for banks to be able to withdraw from the program without having to pay "an onerous exit fee.""

The banks whining about "onerous fees"...such chutzpah!!

[DASChicago]

You see...many of those Thrill seeking Players went to George W. Bush University-Stupid School of Banking.

[greenriverkate]

Let me tell you about Chase. They bought out WAMU and WAMU charge card. I also have a Chase charge card. Well, make auto payments out of my savings every month, early and for more than asked. Then without a word or anything, they tell me my pmt bounced. I spent 2 days arguing with them and having the bank tell them that nothing was sent through for a payment. Then, they inform me, they do NOT take pmts out of a savings account. Gee, they had been for a long time. Now, it is a Chase bank, 2 chase charge cards and even the bank was arguing with them. So, my percent was raised to 21% when they took over WAMU. Now they raised my percent to 29%, charged me $39. for a late fee and $39 for a bounced fee and again this month. I am so furious they can do this. It is illegal but so much is now illegal and no one has the time to solve this "little" problem. They were nasty and rude and refused to drop the fees for something they took out of my saving for months. No, no email, no notice, The site was a closed at the time to redo the site for Chase. I don't forget and never will. This account will be paid off (they continue to keep my balance high no matter what) and I will NEVER EVER use their bank or charge cards again.

[RandVictims]

Underwrite them an ARM.

[DASChicago]

Got that right.

Let those too big to fail (er)...burn right where they stand. Laws are for the Lawless.

[parrotista]

The banks shouldn't be allowed to repay the TARP money in the near future at all.

They owe and they need to be seen as owing. They have received so much in bailouts, loans, guarantees from the US without strings attached that it's only fair that they owe the government in some way where we can have some control over them, control that can't complain about since they would be insolvent otherwise.

They owe and need to be seen as owing until the Administration and the Congress finishes the task of re-regulating the banking industry the way it used to be and the way it should've been in the years that led to this crisis.

- Craig

[lvdragonlady]

Not just NO but h3ll NO.
You accepted it now you will pay to play.

[DASChicago]

I like that!

[hollybork]

How about a Quid Pro Quo? It is time for Treasury to negotiate with the Big Guys just like the rest of the busines world has to do:

They can get a small discount in exchange for giving up lobbying of congress for the next 30 months;
They can get a little bigger discount in exchange for agreeing to cap their credit card fees at 12%, their late fees at $10, and lowering interest rates on loans green businesses to 8%; &
They can get a big discount in exchange for voluntarily spinning off some of their financial services departments as separate, competive companies, so they cease being "too big to fail."

[Hank10303]

Email the White House and put and end to this greed.

If we are a captialist economy then the government has a right to make a profit also - besides they signed the contracts willingly.

http://www.whitehouse.gov/contact/

[Hank10303]

Its time for the Feds to put their foot down. Enough indulgence. The idea that these companies accepted tax payer funds - came running with their hands out to save their companies as a result of their greed and calloused practices now have issue with the government making a profit is so horrid. They have increased rates on every single thing the service; they have instituted fees for the most remote and ridiculous things to raise funds. I cancelled several credit card because the interest rate soared as high as 25%. They refused to re-negotiate bonus contracts; yet they want to renegotiate the warrant provision of the TRAP contracts they signed and return the funds at cost. Well gentlemen cost involves all the expenses for the hearings, research, paper products, and the list goes on. You were so adamant about refusing to change your bonuses policy and now you want kindness and compassion to dictate the business decisions of the Treasury to give you a break on the profit percentage and cost you have to repay the government. I have a one word response for you.

NO!

[NotYouAgain]

So they want to renegotiate an agreement to save themselves money? But they couldn't do that when it came to bonuses? Gee, I guess that old George Bush really pushed their hands into that cookie jar, and now it's unfair that they're expected to pay something for the cookies.

[ClockworkOrange]

how pleasant it would have been for me, and so many others, if we could have negotiated our "onerous" credit card interest rates. at payoff, you pay full interest, also.

they begged for this money. they don't get to beg for "mercy"... not when they enslave the working poor.

off thread: so, who's making out with the best return on the penalties of all of the cashed-in 401ks?

[blood1]

If it was not MY Money, it would be funny....gee, the Banks gleefully took the money when they thought it was "free"...and now they complain. Well, really, they are spending "MY MONEY" to complain that they don't want the gov't (ME) owning Warrants or Voting Shares....as then their books will remain open to public scrutiny (ME).

I would prefer to be out of the banking business, but I expect a ROI...which is what the Banks don't want to pay.

QUIT paying lobbyists with My Money to use my money AGAINST ME!

Does the concept: No such thing as a free lunch mean anything to you?

[Lemeritus]

A little "truth in lending" here, blood1 -- not all banks "gleefully" took the TARP money and I don't think any of them thought it was "free".

Everything else you said: Spot on!

[Hank10303]

Few were forced to take it - yet don't think for one minute they were not aware of the warrant provision at the time. It was their intention from the moment they signed the agreements to back out of what they call excessive fees. The nerve when some credit card interest rates are as high as 25%.

PAY IT BACK WITH INTEREST

[parrotista]

Fair enough. The banks didn't take the TARP money gleefully because that one came with strings attached. But after all that they have received, directly and indirectly (remember the AIG money and who it went to), after all that the US has put on the line to make sure the whole thing didn't go into the toilet, this is hardly unfair.

Yes, the way the banks had to accept the TARP money was extraordinary. The whole damn thing has been extraordinary and the banks' responsibility for getting us all into this is extraordinary as well.

- Craig

[chocolatecity]

Let's make a deal. We will drop the pre-payment penalties if they cap their credit card interest rates. If they can't give Main St. a break then we can't give Wall St. a break either.